e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer recently looked at. A caller asked if they should hold the stock or take profit, and Cramer remarked: “Okay, the stock’s been troubled, and a lot of that I think is because people are confused about the Chinese, with the manufacturing. Let’s do this. If you get a tariff overturn from the Supreme Court, this stock’s going to go up 25 points. Let’s just hold on to it for now because I think it’s actually reflecting some of the weakness that I do ...

Key Takeaways ELF is gaining share with affordable pricing, rapid innovation and a digitally native marketing model.EL is working to stabilize sales and rebuild margins through its Beauty Reimagined transformation plan.ELF reflects high-growth execution and EL diversified scale and recovery potential.e.l.f. Beauty, Inc. (ELF) and The Estee Lauder Companies Inc. (EL) are two influential players in global beauty, operating at different ends of the market while competing across several overlapping categories. ...

Summary of e.l.f. Beauty Conference Call Company Overview - **Company**: e.l.f. Beauty (NYSE: ELF) - **Date**: December 03, 2025 - **Speakers**: Tarang Amin (Chairman and CEO), Mandy Fields (Senior VP and CFO) Key Points Industry and Market Outlook - **Growth Expectations**: e.l.f. anticipates organic growth of 2%-5% in the second half of the fiscal year, with a strong consumption rate of 12% in the U.S. [5][6][15] - **Market Share**: The company gained 90 basis points of market share in October, continuing a trend of gaining share for 27 consecutive quarters [5][16]. - **International Performance**: International consumption is down mid-single digits, particularly in the U.K. due to high promotional activity and the comparison to the launch of Rossmann in Germany [9][10]. Financial Performance - **Q3 vs. Q4 Expectations**: Q3 is expected to perform at or above the 2%-5% growth range, while Q4 may see a negative impact due to shipment comparisons from the previous year, potentially resulting in a double-digit decline in net sales [7][8]. - **Pipeline Impact**: The pipeline impact is quantified at about 4 points for the second half, affecting overall growth expectations [6]. Retail Strategy - **Shelf Space Gains**: e.l.f. has consistently gained shelf space across retailers, with a focus on productivity driving these gains. The brand remains the most productive in terms of dollar per linear foot [23][24]. - **Retail Partnerships**: The company has expanded its presence in major retailers like Target, Walmart, and Ulta, with Target being the largest partner [19][20][26]. Innovation and Product Development - **Innovation Strategy**: e.l.f. focuses on community-driven innovation, launching products based on consumer demand and maintaining a three-year pipeline for new products [36][38]. - **Upcoming Innovations**: The company is optimistic about its spring innovation pipeline, which includes several highly anticipated products [31][32]. Acquisition and Growth Potential - **Rhode Acquisition**: e.l.f. views the acquisition of Rhode as a significant growth opportunity, with Rhode achieving $212 million in net sales with just 10 products. The brand is expected to expand its distribution and innovation pipeline [40][48]. - **Skincare Market**: e.l.f. sees a massive opportunity in the skincare market, with Naturium and e.l.f. Skin complementing each other. The skincare segment is projected to be a key driver of growth [57][59]. Capital Allocation and Financial Health - **Stock Repurchase**: e.l.f. recently repurchased $50 million of stock, indicating confidence in the company's long-term potential despite market volatility [30]. - **SG&A Expenses**: The company expects a significant increase in SG&A expenses, primarily due to investments in marketing and infrastructure to support growth [66][70]. Consumer Behavior and Market Conditions - **Consumer Spending**: Despite macroeconomic concerns, e.l.f. has seen strong consumer spending during the holiday season, indicating resilience in its value proposition [80]. Conclusion - e.l.f. Beauty is positioned for continued growth through strategic retail partnerships, innovative product development, and a strong focus on consumer engagement. The company remains optimistic about its market share potential and the impact of its recent acquisitions on future performance.

Core Viewpoint - e.l.f. Beauty, Inc. is currently facing challenges, including tariff issues and high short interest, which have led to a decline in stock performance, despite its potential as an investment [1][2]. Group 1: Company Overview - e.l.f. Beauty, Inc. operates in the cosmetics and skincare sector, offering products under various brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare [2]. - The company's market capitalization is currently approximately $4.6 billion, which is perceived as low given its brand potential [2]. Group 2: Investment Sentiment - Jim Cramer expressed a belief in the company's potential, suggesting it could be a buy despite acknowledging recent operational mistakes related to cost structure [2]. - There is a contrasting view that other AI stocks may present greater upside potential and lower downside risk compared to e.l.f. Beauty [2].

Summary of e.l.f. Beauty Fireside Chat - November 14, 2025 Company Overview - **Company**: e.l.f. Beauty (NYSE: ELF) - **Key Speakers**: Tarang Amin (Chairman and CEO), Mandy Fields (CFO) Key Points Industry and Market Trends - The U.S. mass beauty market has shown a growth of 2% in the last quarter, consistent with a decade-long trend [3][4] - e.l.f. has gained 160 basis points of market share recently, marking 27 consecutive quarters of market share gains [3][4] - e.l.f. is the number one unit share brand and number two dollar share brand in the beauty market, with significant potential for future growth [4] Financial Performance - e.l.f. experienced a surprising stock price pullback following FQ2 results, which the management deemed an overreaction [2] - The company repurchased $50 million of shares, reflecting confidence in its business fundamentals [2] - Organic sales declined by 3% in FQ2, primarily due to a strategic decision to halt shipments to certain retailers [6][12] - Consumption trends remained strong, with a 7% increase in consumption despite shipment issues [16][20] Shipment and Inventory Management - The decision to stop shipments was a tactical move to ensure retailers reflected the correct pricing after a price increase [7][10] - Normal shipment patterns resumed post-Q2, with no lingering issues expected in FQ3 [13][20] - The company anticipates that shipments will continue to lag behind consumption in the second half of the year due to previous expansions in retail space [15][16] International Expansion - International growth was reported at 2% in FQ2, impacted by the previous year's launch at Rossmann [14][47] - The U.K. market has faced challenges due to increased promotional activity from competitors, but e.l.f. continues to gain market share [48] - Future growth is expected from markets like Germany and the GCC, with significant expansion plans in place [44][50] Product Innovation and Pricing Strategy - e.l.f. plans to launch new products in spring 2026, with expectations of strong performance following previous successful launches [27][78] - A 15% price increase was implemented, with management pleased with the resulting consumption trends [74] - The company maintains a strong value proposition, with 75% of its portfolio priced at $10 or less [80] Acquisition of rhode - The acquisition of rhode is seen as a strategic move to enter the prestige beauty segment, with strong initial sales performance [81][84] - rhode is expected to contribute positively to e.l.f.'s overall margins and growth trajectory [56][58] - The brand has shown significant momentum in retail launches, outperforming previous records at Sephora [82][84] Gross Margin and EBITDA Outlook - e.l.f. expects a 200 basis point sequential improvement in gross margins for the second half of the year, despite tariff challenges [55][63] - Marketing spend is projected to increase in the second half, impacting EBITDA margins but aimed at driving long-term growth [62][63] Technology and AI Integration - e.l.f. is in the early stages of leveraging AI for operational efficiencies, particularly in marketing and consumer engagement [68][71] Conclusion - e.l.f. Beauty remains optimistic about its growth prospects, driven by strong consumption trends, strategic pricing, and innovative product launches, alongside the successful integration of rhode into its portfolio [39][84]

Core Viewpoint - e.l.f. Beauty, Inc. is currently viewed as a potentially undervalued stock, with a market capitalization of $4.6 billion, despite recent challenges and volatility in its trading performance [1][2]. Group 1: Company Overview - e.l.f. Beauty, Inc. operates in the cosmetics and skincare sector, offering products under brands such as e.l.f. Cosmetics, Well People, Naturium, and Keys Soulcare [2]. - The company is based in Oakland and is recognized for its value-oriented approach to cosmetics [2]. Group 2: Market Performance - The stock has experienced a 9% increase for the year, although it has been characterized by volatility, partly due to its reliance on China for manufacturing [2]. - Despite the challenges, there is an expectation of further upside potential for the stock [2]. Group 3: Analyst Insights - Jim Cramer expressed a strong belief in the stock's potential, suggesting it is a buy despite acknowledging some past mistakes in cost structure [1]. - Cramer’s commentary indicates a divergence from the prevailing market sentiment, highlighting the stock's current low valuation as an opportunity [1].

Core Insights - e.l.f. Beauty is capitalizing on economic constraints by maintaining affordability, with 75% of its products priced at $10 or less despite a recent $1 price increase [1][2] - The company reported a 14% increase in quarterly net sales to $343.9 million, slightly below analyst expectations [3] - e.l.f. Beauty forecasts fiscal 2026 revenue between $1.55 billion and $1.57 billion, indicating 18%–20% growth, although below analyst expectations of $1.65 billion [4] Financial Performance - Quarterly net sales rose to $343.9 million from $301.1 million a year earlier, reflecting a 14% increase [3] - Adjusted earnings per share reached $0.68, surpassing consensus estimates of $0.57 [4] Challenges and Strategies - The company anticipates over $50 million in additional annual costs due to higher U.S. tariffs, with the weighted average tariff rate increasing to about 60% from 25% [5] - To mitigate tariff impacts, e.l.f. Beauty is diversifying its supply chain, adjusting prices, and expanding internationally [6] Innovation and Growth - e.l.f. Beauty continues to innovate, with the recent acquisition of Hailey Bieber's Rhode brand for $800 million, contributing to its growth forecast [7] - Currently, only 20% of e.l.f. Beauty's sales come from international markets, indicating significant growth potential compared to competitors [8] Leadership and Vision - The company emphasizes agility and growth amidst volatility, with a focus on digital innovation and AI integration [9] - e.l.f. Beauty aims to become the No. 1 color cosmetics brand, maintaining a positive outlook despite external challenges [10]

Financial Data and Key Metrics Changes - In Q2, net sales increased by 14% year-over-year, reaching $344 million, following a 40% growth in the same quarter last year [20][22] - Adjusted EBITDA for Q2 was $66 million, down 4% compared to the previous year [22] - Adjusted net income was $41 million, or 68 cents per diluted share, compared to $45 million, or 77 cents per diluted share a year ago [22] - Gross margin for Q2 was 69%, down approximately 165 basis points year-over-year, primarily due to increased tariff costs [21][22] Business Line Data and Key Metrics Changes - The acquisition of Rhode contributed $52 million, or approximately 17 percentage points, to net sales in Q2 [20][22] - Organic net sales, excluding Rhode, were down approximately 3% this quarter [3][20] - e.l.f. brand grew 7% in Q2, significantly outpacing the overall category growth of approximately 2% [2][3] Market Data and Key Metrics Changes - U.S. net sales grew 18% year-over-year in Q2, while international net sales grew 2% [20][21] - e.l.f. Beauty gained 140 basis points of market share in Q2, marking the 27th consecutive quarter of market share gains [2][3] Company Strategy and Development Direction - The company aims for full-year net sales growth of 18%-20% year-over-year, building on the 28% growth achieved in fiscal 2025 [4][25] - The addition of Rhode is expected to enhance long-term growth, with projected contributions of about $200 million in net sales for fiscal 2026 [5][26] - The company is focused on expanding its international presence, with launches planned in Poland and the Gulf Cooperation Council [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of consumption trends and market share gains, indicating a positive outlook for fiscal 2026 [4][27] - The company anticipates that shipments will remain below consumption in fiscal 2026, particularly as they cycle through significant distribution gains from the previous year [4][27] - Management noted that the pricing strategy is designed to maintain price sanctity across retailers, which has been successfully resolved after initial delays [38] Other Important Information - The company has successfully transitioned to SAP for its ERP system, marking a significant milestone in its operational capabilities [23] - The marketing and digital investment for Q2 was 23% of net sales, slightly down from 24% in the previous year [22] Q&A Session Summary Question: Can you provide more insight into the corporate top-line guidance and the impact of shipments versus underlying consumption? - Management noted that consumption outperformed category growth, with e.l.f. brand growing 7% compared to the category's 2% [34] - The disconnect between consumption and shipments was primarily due to pricing issues, which are expected to normalize in the second half [34][35] Question: What are the expectations for organic growth in the second half? - Management expects organic growth of 2%-5% in the second half, driven by strong consumption trends [35][36] Question: How does the company view tariffs and their impact on inventory? - Management indicated that tariffs have been reduced to 45%, which is expected to improve gross margins in the second half [44][45] Question: What is the strategy for Rhode's distribution between wholesale and DTC? - The company plans to focus on both wholesale and DTC channels, with exclusive drops on their DTC site to drive sales [57] Question: Can you elaborate on the expected slowdown in organic growth for the core business? - Management highlighted that while consumption remains strong, the expected slowdown is due to cycling space expansions from the previous year [72][74]

Group 1 - E.l.f. Beauty forecasts net sales for fiscal 2026 to be between $1.55 billion and $1.57 billion, an increase from $1.31 billion in 2025 [1] - The company expects adjusted net income to be in the range of $165 million to $168 million, down from $198 million [2] - In Q2, net sales rose 14% to $343.9 million, although this was below Wall Street's forecast of $366 million [2] Group 2 - E.l.f. gained 140 basis points of market share for its namesake brand and had a record launch of Rhode in Sephora North America [3] - The launch of Rhode was the largest in Sephora North America's history, being two-and-a-half times larger than the second-largest launch [4] - The company refrained from providing a full-year 2026 estimate earlier due to uncertainties related to tariffs [4] Group 3 - The average tariff rate for the current year is 56%, compared to 25% last year, impacting the company's guidance [5] - E.l.f. has a strong balance sheet post-Rhode acquisition, allowing for potential future acquisitions if they meet high criteria [6] - The primary focus remains on strong organic growth, with significant opportunities across the brand portfolio [6]

Group 1 - e.l.f. Beauty, Inc. is a value-oriented cosmetics company based in Oakland, with a stock price increase of 9% for the year, despite volatility due to reliance on China for manufacturing [1] - Concerns regarding the stock's reliance on China are considered "baked into the stock," indicating that current market conditions have already accounted for these risks [2] - The recent parabolic move in the stock price suggests it may be overvalued at this time, prompting recommendations to trim positions rather than buy more [2] Group 2 - e.l.f. Beauty develops and sells products under various brands, including e.l.f. Cosmetics and e.l.f. Skin, indicating a diverse product portfolio [2] - There is a belief that certain AI stocks may offer greater upside potential and less downside risk compared to e.l.f. Beauty, suggesting a competitive landscape in investment opportunities [2]